Old Country Buffet has been an American strip mall staple for years. At one point the only thing Americans loved a lot more than eating, was eating at a buffet. But in the 21st century, despite the commitment of delicious cheese biscuits awaiting you behind those ubiquitous red letters, Old Country Buffet has definitely had some setbacks. And we’re not just speaking about broken froyo machines at the lunch rush.
The property owner of hometownbuffet along with other buffet dining chains filed on Monday for Chapter 11 bankruptcy, blaming a lawsuit which had been not disclosed when its current owner bought the businesses in August.
Buffets LLC, an affiliate of Food Management Partners, in August paid an undisclosed amount for that chains Old Country Buffet, Ryan’s, Fire Mountain and Tahoe Joe’s, along with HomeTown, based on Food Management Partners’ website.
Those chains, which operate 150 restaurants, were part of the bankruptcy filing on Monday, according to court documents. The firm that sold the restaurant chains in August failed to disclose a pending lawsuit, which led to an $11.4 million judgment, in accordance with a statement from Peter Donbavand of San Antonio, Texas-based Food Management Partners.
He also said the chains have observed sharp drops in sales which he considered unusual. The statement did not say who sold the businesses to Food Management Partners, along with a spokeswoman would only say it had been “private equity.”
The company said sales have fallen 22 percent lacking the seller’s projections, prompting the closure of 74 stores in recent weeks and the other 92 in the next 10 days. Buffets LLC and also the chains do business beneath the Ovation Brands name.
It absolutely was the next filing since 2008 years for the restaurant chains, which previously entered bankruptcy called Buffets Inc. The chains listed assets worth approximately $50 million and liabilities of up to $100 million, in accordance with documents filed inside the U.S. Bankruptcy Court for the Western District of Texas.
Buffets Inc and the Ryan Restaurant Group merged in 2006 to produce the largest U.S. buffet chain. At the begining of 2008, however, the company declared Chapter 11 bankruptcy to shed a few of its 626 locations and cut its debt by $700 million. The business returned to bankruptcy in 2012, now to slim its reach from 494 restaurants.
Unfortunately for businesses like Old Country Buffet, buffets tend to be synonymous with obesity. Anyone who’s seeking to shed some pounds might see images of endless bins of greasy food as being a straight-up recipe for fatness, so probably, they’re staying away.
And then any diet-conscious individual that does eat out at Old Country Buffet will more than likely cost the chain money, so that’s not any better. Buffets are able to spend less by focusing on the behavioral psychology of how we eat out at hometown buffet menu. For instance, more canbhp protein items like fish or beef are available in smaller portion sizes and additional down the line, when they provide us with use of huge, heaping portions of the cheap stuff like rice and potatoes. Buffets also create a point out use smaller serving utensils using the more expensive grub.